Signature Resources Ltd. Announces Upsize of Previously Announced Private Placement Financing up to C$1,030,402
Signature Resources Ltd. Announces Upsize
of Previously Announced Private Placement
Financing up to C$1,030,402
Toronto, Ontario--(Newsfile Corp. - February 24, 2023) - Signature Resources Ltd. (TSXV: SGU)
(OTCQB: SGGTF) ("Signature" or the "Company") announces that it has increased the size of its
previously announced non-brokered private placement from aggregate gross proceeds of C$900,000 to
aggregate gross proceeds of C$
1,030,402
(the "Offering"). The Offering will consist of the sale of
common shares of the Company at a price of C$0.04 per common share. The Company has received
commitments for over half of the Offering from members of the Company's board of directors (the
"Participating Directors").
The net proceeds of the Offering will be used for the ongoing work in preparation of the initial mineral
resource estimate for the Lingman Lake gold property, the repayment of existing loans and for general
corporate and working capital purposes.
Completion of the Offering remains subject to the approval of the TSX Venture Exchange.
All securities
issued in connection with the Offering will be subject to a four-month-and-one-day statutory hold period.
The Company anticipates paying a 7% finder's fee, payable in cash, to certain eligible parties who have
placed subscribers in the Offering.
The proposed purchase of common shares in the Offering by the Participating Directors will be a
"related party transaction" pursuant to Multilateral Instrument 61-101 -
Protection of Minority Security
Holders in Special Transactions
("MI 61-101"). Pursuant to Sections 5.5(b) and 5.7(1)(b) of MI 61-101,
the Company is exempt from the requirements to obtain a formal valuation and minority shareholder
approval, respectively, in connection with the Offering as the common shares are listed on the TSX
Venture Exchange, neither the fair market value of the common shares proposed to be purchased by the
Participating Directors' in the Offering nor the consideration to be received for such common shares will
exceed $2,500,000, and at least two-thirds of the independent directors in respect of the Offering have
approved the transaction. The Company will file a material change report in respect of the Offering, but it
may be filed less than 21 days in advance of the closing of the Offering, which the Company deems
reasonable in the circumstances as it desires to complete the Offering in an expedition manner and
requires consideration it will receive in connection with the Offering immediately for working capital
purposes.
About Signature
The Lingman Lake gold property (the "Property") consists of 1,434 staked claims, four freehold, fully
patented claims, and 14 mineral rights patented claims totaling approximately 27,113 hectares. The
Property includes what has historically been referred to as the Lingman Lake Gold Mine, an underground
substructure consisting of a 126.5-metre shaft, and 3-levels at 46-metres, 84-metres and 122-metres
depths. There have been over 28,000 metres of historical drilling done on the Property.
To find out more about Signature Resources Ltd., visit our website at
www.signatureresources.ca
, or
contact:
Donna McLean
Chief Financial Officer
416-840-6345 or
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